RESEARCH PLAN - EXPERIMENTAL PROTOCOL Subjects - We plan to study subjects with T2DM (BMI 30-40 Kg/m2, age=18-70 years, HbA1c <10%); of which equal number of subjects in each group will receive placebo/study drug. With this study design, we will be able to discriminate the effects of pioglitazone on TIMP3 and TACE substrate activity and gene expression in patients with T2DM and non-diabetic subjects with metabolic syndrome. Subjects in both arms of the study (placebo and study drug) will be matched for age, BMI and HbA1c and the effects of Pioglitazone in these subjects will be independent of the glucose lowering effect of the drug. Diabetic subjects who have previously received insulin or who are taking a thiazolidinedione will be excluded. Only diabetic patients who are free of other major organ disease will be studied. Only subjects whose body weight has been stable for at least three months and who do not participate in strenuous exercise will be studied.